(Photo by Costfoto/NurPhoto via Getty Images)
Apple supplier Foxconn is already planning to alter its manufacturing plans in response to President Trump's 10% tariffs on China and impending 25% tariffs on Mexico, and doesn't expect a major impact from the growing trade war.
Speaking to reporters in Taiwan on Wednesday, Foxconn Chairman Young Liu confirmed the company is modifying its manufacturing, which includes factories in Mexico, Taiwan, and Vietnam.
"I think Trump hopes to bring manufacturing in the US. To respond to manufacturing in the US, [Foxconn's Hon Hai Technology] Group will work with our partners together in different places [in] the US, where there will be some related arrangements," Liu said.
"These arrangements...are currently underway,” he added without elaborating. “So for the Group, if we don't manufacture here, we’ll manufacture over there. So the overall impact shouldn’t be very large.” That said, Liu noted the tariffs could disrupt the world’s economy.
So far, Trump has placed a 10% tariff on goods from China, where Foxconn operates some of its largest factories, including those that build Apple iPhones. This has caused price hikes for Nvidia’s latest graphics cards, the RTX 5000 series, according to Newegg.
Trump has delayed a 25% tariff on Mexican (and Canadian) goods until March 4. In the meantime, Liu says Foxconn is making preparations in both Mexico and the US should that happen.
Trump also plans to tariff foreign-made chips, including those from Taiwan, in an effort to turn the US into a manufacturing giant. But building electronics factories takes years and billions of dollars.
During the first Trump administration, Foxconn planned to build a $10 billion display plant in Wisconsin. However, the company mostly abandoned the project, reportedly due to a lack of LCD suppliers in the country. That said, Foxconn still uses the facility for manufacturing data servers.
Like What You're Reading?
This newsletter may contain advertising, deals, or affiliate links. By clicking the button, you confirm you are 16+ and agree to our Terms of Use and Privacy Policy. You may unsubscribe from the newsletters at any time.
Thanks for signing up!
Your subscription has been confirmed. Keep an eye on your inbox!
Sign up for other newsletters
Read the latest from Michael Kan
- AT&T 'SplitPay' Lets You Divide Monthly Phone Bills Across a Household
- Company Involved in Huge SSN Leak (Barely) Fined by California Regulators
- Musk-Friendly FCC Faces Key Decision on Apple's Satellite Connectivity
- Ugh: Nvidia's GeForce RTX 5070 Ti Sells Out Instantly on Launch Day
- Nvidia Might Sell You an RTX 5080 or 5090 Directly—Just Fill Out This Form
- More from Michael Kan
